Forbes: Central Banks Buy 20 Tons of Gold in May, Says World Gold Council
Article by Royston Wild in Forbes
Global central banks bought another 20 tons of gold in May as conflict erupted in the Middle East, the World Gold Council (WGC) announced on Wednesday.
Total purchases were up from 12 tons in April, but lower than the 12-month average of 27 tons, data from the organization showed.
The WGC commented that “fresh tensions in the Middle East may have reinforced the strategic appeal of gold for central banks looking to safeguard reserves against geopolitical shocks.”
Gold demand has risen sharply in recent years, driven by military actions in Europe and the Middle East, and concerns over the impact of fresh trade tariffs on global growth and inflation.
Central bank buying has also risen as reserve managers have sought to diversify their holdings away from the US dollar and towards other paper currencies and gold bullion.
Gold prices surged to all-time peaks just above $3,500 per ounce in late April before .....